CenterPoint Energy Stock: Is Wall Street Bullish or Bearish?
With a market cap of $24.8 billion, CenterPoint Energy, Inc. (CNP) is a public utility holding company providing electric transmission, distribution, and generation, as well as natural gas distribution and sales. It serves over 2.8 million metered customers, maintains significant electric infrastructure, including 352 substations, and owns intrastate pipeline assets in Louisiana and Texas.
Shares of the Houston, Texas-based company have outperformed the broader market over the past 52 weeks. CenterPoint Energy has returned 28.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.2%. Moreover, shares of CNP are up 19.6% on a YTD basis, compared to SPX's 3.7% decline.
Looking closer, the energy delivery company has also outpaced the Utilities Select Sector SPDR Fund's (XLU) nearly 14% return over the past 52 weeks.
Despite missing Q1 2025 adjusted EPS estimates with $0.53, CenterPoint Energy's shares rose 1.5% on Apr. 24. Revenue of $2.9 billion beat expectations and grew 11.5% year-over-year. Investors were also encouraged by the reaffirmation of the full-year 2025 adjusted EPS guidance of $1.74 - $1.76, aligning with consensus expectations. Positive sentiment was further supported by future electric transmission investments, especially after PUCT’s recent approval of the 765-kV standard.
For the fiscal year ending in December 2025, analysts expect CNP's EPS to grow 8% year-over-year to $1.75. The company's earnings surprise history is mixed. It beat or met the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings and 11 “Holds.”
This configuration is more bullish than three months ago, with five “Strong Buy” ratings on the stock.
On Apr. 28, Evercore ISI raised CenterPoint Energy’s price target to $41 with an “Outperform” rating after strong Q1 2025 results. The company also raised its 10-year capex plan to $48.5 billion and maintained a 6% - 8% annual adjusted EPS growth target through 2030.
As of writing, CNP is trading below the mean price target of $38.37. The Street-high price target of $42 implies a potential upside of 10.7%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.